DOTr buys 120 LRT train coaches from Mitsubishi for P12.86B

Published December 01, 2017 06:49 PM By TED CORDERO and MARGARET CLAIRE LAYUG,GMA News

The Department of Transportation on Friday signed a P12.86-billion contract to buy from Mitsubishi Corp. new Light Rail Vehicles (LRVs) for the Light Rail Transit Line 1 (LRT1) south extension project.
 
Transportation Secretary Arthur Tugade and Mitsubishi Corp. senior vice president Tetsuji Nakagawa finalized the contract covering the rolling stock requirements of the 12-kilometer LRT1 extension from Baclaran to Bacoor, Cavite.

The 120 LRVs will be paid using loan proceeds from a Japan International Cooperation Agency (JICA) official development assistance (ODA) signed in March 2013 amounting to ¥43.252 billion or approximately P30 billion.

"After a 15 percent downpayment, subsequent payments will be made as the LRVs are delivered," Transportation Assistant Secretary for Rails Timothy John Batan told GMA News Online.

"Kay terms of the JICA loan are 0.2 percent per annum interest rate and repayment period of 40 years, inclusive of 10 years grace period," Batan said.
 
In a statement, the DOTr said the Spain-based subcontractor, Mitsubishi Corp.- Construcciones y Auxiliar de Ferrocarrile, is expected to complete the delivery of the LRVs on Dec. 31, 2021.
 
The first four LRVs are expected to arrive in the Philippines on Aug. 31, 2020 while the next delivery of 40 LRVs are due on Dec. 31, 2020.
 
The LRVs were described as "energy efficient and have low maintenance cost ... The LRVs are also designed with four-LRV configuration. Each train set would have a minimum of 1,388 passengers, sitting and standing," the DOTr said.
 
Batan said during the contract signing that the line extension will enable the LRT1 to carry 800,000 passengers per day from currently 500,000.
 
Also present at the signing are Spanish Ambassador Luis Calvo Castaño, representatives from the Embassy of Japan, Japan International Cooperation Agency, Light Rail Manila Corporation, and DOTr officials.
 
Construction of the LRT1 extension project is set to begin next year. It "will be completed within the term of President (Rodrigo) Duterte," the DOTr said. — VDS, GMA News

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